After the awful impact of July 2006 war on the tourism sector, the 2008 winter season was impatiently expected by the professionals of the sector. Unfortunately, the season did not satisfy their expectations. The Ministry of Tourism and the entire sector have decided to bet more and more on the Lebanese tourists of the Diaspora. A high potential target that seems determined to benefit from Lebanon despite its instability: According to the Central Administration for Statistics, 914 716 (which means more than 42%) from the 2 140 591 travelers that visited Lebanon in 2007 were Lebanese. So how does the tourism sector survive nowadays? To see things more clearly, we closely followed one major actor of the hotel sector in Lebanon: Robert Zoghby, CEO of the Intercontinental Mzaar Resort, who examined with us his balance sheet for the 2008 winter season.

iloubnan.info: How do you evaluate the impact of the present political situation on the activity of your hotel?
Robert Zoghby: Nowadays, it is very negative! The ravages have been increasing and we are running out of creativity to deal with the situation for more than three years. But it is worth noting that at the beginning, this impact was rather positive. In fact, the Intercontinental Mzaar is a mountainous destination that offers security and daily departure to visitors in an environment that keeps them away from stress. Yet, at the beginning of the crisis, people used to run away from stress and take refuge in the heart of the mountain. However, the situation changed nowadays. We have lost the majority of the Gulf tourists. This situation is very worrying since Lebanon depends a lot on these countries.

How much time can you still hold on?
In fact, we can hold on as much as we decide. We just need to set up an intelligent strategy vis-à-vis the economic situation. We should follow the evolution of the market and not hesitate to create new markets. We must have the right idea about the purchasing power of the clients and create products and offers according to it. Moreover, controlling the expense can help us adjust the formula. The only problem is that the Intercontinental Mzaar is a five stars hotel… so at a certain point we should consider a position and sacrifice either the standing or the volume. Until now, we are doing great, but it is a very hard task. Besides, we must face the increasing prices of petrol and alimentary goods. All this affects the touristic and commercial markets.

How do you evaluate the contribution of the Lebanese Diaspora?
The rush of the Lebanese from the foreign countries during the last two years has allowed us to fill in the lack of foreign tourists. The tourism of the Lebanese Diaspora represents 40 to 45% of the Lebanese market. And this is very exceptional. For us, the Lebanese Diaspora represent around 35% of our Lebanese clients. Before the July war,, this rate was of 10%.

Do they really know the Intercontinental Mzaar? Is it well covered by the media?
We dedicate a marketing budget of 170 000$ of commercials and Public Relations (through the Intercontinental chain and through our own means) to the development of the reputation of the resort not only as a ski destination, but also as a summer destination that suits gatherings organized by companies.

In your strategic plan, do you propose exclusive packages sold in the foreign countries?
Of course! In fact, it is one of our solutions to face the current economic situation. We developed this strategy for all the seasons, events, and occasions taking aim at niche markets and creating activities for families, kids, romantic young married people, experts… this is one of the essential reasons for our survival!

Do they consume more or less than the strangers?
It depends on their nationality and age, and on whether they are part of a family or a couple. But we usually think that the Lebanese people are mainly living pretty well. Then come the Cypriots, due to the proximity between our countries, then the Gulf countries and, less and less, the Europeans. However, it is clear that their outlays have become smaller since the 2000s.

Are you satisfied with the price list applied vis-à-vis the current inflation?
Yes! Each price list is well studied but I cannot hide my worries about the constant increasing prices of oil and alimentary goods, since we unfortunately cannot let the consumer bear this increase in this present economic situation. So by proposing intelligent tariffs to the client, we are applying our strategy on a long-term, and therefore, we should sacrifice a bit! However, it is clear that our prices are more than 40% less than what the European skiing stations propose. We should know that we are not so far from them and we are the only five-star hotel in Europe and the Middle East affiliated to an international chain, another value added for the client. Not to mention that the Euro has become a handicap even for the skiers: hence, we are a favorable destination. Let us not forget about the natural advantages we have: 320 sunny days per year, a high quality snow, a snow storm that doesn’t last for so long… Furthermore, we are close to the capital, to the coast, to all the others Lebanese centers of interest as the touristic sites of Baalbek, Jeita….. All we need is a true political stability and a great economic boom.

What are your future perspectives in case the crisis in not resolved?
I am not worried about Lebanon and I do not like to expect the worst… That is why I am optimist. This urges me to always keep finding new markets and creating new needs while being aware of the customer’s needs. I am convinced that the crisis will easy fade away.

What was the balance sheet for this year?
We had a record for the month of December in the history of the Intercontinental Mzaar. In January, 55% of the hotel was full and in February, 75% was reserved mostly by Lebanese clients (either from Lebanon or from the Diaspora).